Thomas D’Ambrosio
Abstract:
Negotiating ISDA Master Agreements is fraught with peril for the inexperienced. Numerous issues need to be fully considered in such negotiations in order to reach a satisfactory conclusion. This paper provides an overview to the ISDA Master Agreement and discusses various topics which are frequently contested, such as rehypothecation, credit downgrade triggers and cross default. It also discusses applicable laws that should be considered when negotiating ISDA Master Agreements and proposed changes to such laws.
Keywords:
ISDA Master Agreement, rehypothecation, cross default, ratings trigger, eligible contract participant, credit support annex
Thomas D’Ambrosio is a partner with Morgan, Lewis & Bockius. He focuses on structured and complex derivative transactions and insolvency matters relating to such structures for Fortune 500 corporations, private companies, hedge funds, financial institutions, pension funds, and high-net-worth individuals. He regularly assists those clients in connection with structuring, negotiating, and analysing the risk inherent in a wide range of derivative products, including equity, debt, credit, commodity, interest rate, currency and exotic derivatives.